Ardoino joined Tether back in late 2015 as a developer before being appointed chief technology officer around a year later. A government bailout is also a possibility. Another 18 per cent is held in fiduciary deposits, more than 12 per cent in secured loans and nearly 10 per cent in corporate bonds, funds and precious metals. A commercial paper report from Evergrande at the end of 2021 showed its main unit had $32 billion, just around 10% of its total liabilities. Consider this - most of the reserve assets Tether holds to support its USDT are commercial papers (CPs) and certificate of deposits (CDs) instead of the US dollar. Those questions can only be answered with a little more transparency from the stablecoins issuer. Tether said that it funnelled roughly half its reserves into commercial paper. He takes the lead in the majority of the company's communications, while the CEO and CFO stay firmly in the background. By signing up, you will receive emails about CoinDesk product updates, events and marketing and you agree to our, Bankman-Fried Should Have Only Flip Phone, Website Whitelist, DOJ Says, With Congress Impotent, Courts Are the Only Option for Fighting SEC Overreach, Silvergate Closes SEN Platform Institutions Used to Move Money to Crypto Exchanges, Binance.US Is Operating 'Unregistered Securities Exchange,' SEC Official Says. Regulators are starting to pay greater attention to stablecoins digital tokens which are pegged in value to other assets, often the U.S. dollar, and backed by a pool of assets and some observers have raised concerns about the tokens liquidity in a time of stress. About half of Tethers roughly $75 billion in assets, which back USDT, is in commercial paper. Tether reserves the right to change these Terms at any time without notice, and such changed Terms will take effect once we post them at the Site. ", Regulators are starting to pay greater attention to stablecoins - digital tokens which are pegged in value to other assets, often the U.S. dollar, and backed by a pool of assets - and some observers have raised concerns about the tokens' liquidity in a time of stress. Please enter your email address. "An industry is not an industry if there is only one player, instead having many players with different offerings with different use cases is really helpful in a moment when you have to talk with the regulator," Ardoino said. Since Evergrande's potential collapse could have broad implications for the commercial paper market and Tether's most recent attestation contains no breakdown of either the geographical exposure or investment category of the paper it holds, market participants are concerned about the risks to Tether's books. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. "Tether does not hold any commercial paper or other debt or securities issued by Evergrande and has never done so," the company said. cookies But is it bad? This type of debt financing is back in the limelight as China's second largest property developer Evergrande teeters on the brink of default. CNBC's Jim Cramer urged investors who have gains in their cryptocurrency portfolios to take some profits, saying Monday he believes digital currencies are likely to face more weakness related to struggling Chinese property developer Evergrande.
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